Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Just Dial Ltd. indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s potential risk and return profile in the current market environment.
Quality Assessment
As of 21 January 2026, Just Dial Ltd. holds an average quality grade. This reflects moderate operational efficiency and business fundamentals. While the company has demonstrated some growth, it has not consistently delivered superior profitability or robust competitive advantages that would elevate its quality rating. The average quality grade suggests that the company’s core business fundamentals are stable but lack the strength to inspire confidence for significant upside potential.
Valuation Perspective
The valuation grade for Just Dial Ltd. is currently fair. This indicates that the stock is neither significantly undervalued nor overvalued relative to its earnings and growth prospects. Investors should note that a fair valuation implies limited margin of safety, especially when combined with other less favourable factors. The stock’s market price appears to be aligned with its current earnings power and growth trajectory, offering little incentive for value-driven investors to initiate or increase positions.
Financial Trend Analysis
The financial grade is flat, signalling stagnation in key financial metrics. As of today, the company’s net sales have grown at an annualised rate of 10.24% over the past five years, while operating profit has increased by 15.68% annually. Although these figures indicate some growth, the pace is modest and insufficient to drive strong shareholder returns. Additionally, the latest quarterly results show flat performance, with non-operating income constituting a substantial 50.77% of profit before tax, and earnings per share (EPS) at a low Rs 13.87. This reliance on non-operating income raises concerns about the sustainability of profits.
Technical Outlook
The technical grade for Just Dial Ltd. is bearish, reflecting negative momentum in the stock price. The latest price movements show a decline of 0.96% on the day, with longer-term returns also under pressure. Over the past year, the stock has delivered a negative return of 25.81%, underperforming the broader BSE500 index across multiple time frames including one year, three months, and three years. This bearish technical stance suggests that market sentiment remains weak, and the stock may face continued downward pressure in the near term.
Performance and Returns
Currently, the stock’s returns paint a challenging picture for investors. As of 21 January 2026, Just Dial Ltd. has recorded losses across all key periods: -0.96% in one day, -2.92% over one week, -4.21% in one month, -11.92% over three months, -19.55% in six months, and -3.61% year-to-date. The one-year return of -25.81% is particularly notable, highlighting significant erosion in shareholder value. This performance underscores the risks associated with holding the stock under current conditions.
Implications for Investors
The 'Sell' rating reflects a combination of average quality, fair valuation, flat financial trends, and bearish technical signals. For investors, this means that Just Dial Ltd. currently lacks the attributes that typically support capital appreciation or reliable income generation. The stock’s underperformance relative to market benchmarks and its subdued growth prospects suggest that investors should approach with caution. Those holding the stock may consider reassessing their positions, while prospective buyers might wait for clearer signs of improvement before committing capital.
Sector and Market Context
Operating within the E-Retail and E-Commerce sector, Just Dial Ltd. faces intense competition and rapidly evolving market dynamics. The sector often rewards companies with strong innovation, scalability, and robust financial health. In this context, Just Dial’s average quality and flat financial trend place it at a disadvantage compared to peers demonstrating stronger growth and technical momentum. Investors should weigh these sector-specific challenges when evaluating the stock’s outlook.
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Summary
In summary, Just Dial Ltd.’s current 'Sell' rating by MarketsMOJO, last updated on 02 Jan 2025, is supported by its present-day fundamentals as of 21 January 2026. The company’s average quality, fair valuation, flat financial trend, and bearish technical outlook collectively suggest limited upside potential and heightened risk. Investors should carefully consider these factors in the context of their portfolio objectives and risk tolerance before making investment decisions regarding this stock.
Looking Ahead
For Just Dial Ltd. to improve its investment appeal, it would need to demonstrate stronger financial growth, improve operational quality, and reverse its negative technical momentum. Until such improvements materialise, the 'Sell' rating serves as a prudent guide for investors to remain cautious and vigilant.
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